Hello All, first post and it will be a complicated one. Feel free to move it wherever it is most applicable, and thanks in advance for any information or help!

The big picture is that I am getting married this fall and my fiance and I are looking forward to buying a house. I already own my home, but would like to buy another and move to another location for tax purposes. I plan on keeping the house as a rental.

The complicated part is that I have an IRA that is actually a roll over from a military TSP. I have another retirement through my current work, and my fiance has her own retirement account through her work as well. This IRA has just over $10,000 in it and I would like to just withdraw and close the account to simplify everything, and use the money towards down payment on our next house. Combining it with either of our current retirement accounts would have little gain, but if it could help us with the down payment on our house that would be great. Both of our retirement account are employer matched and have a complicated process for rolling this account into them because there are tax free contributions to the account from when I was deployed in a war zone.

I don't want to pay the penalties on early withdrawal, and I will have owned a house within the last two years. My question is this: Can I transfer my IRA to my spouse, then finance a house with her withdrawing the account? Everything that I have read says that if we are both "First time home buyers" then we can each withdraw $10,000 towards the purchase of a house. But I can not find an guidance about co-finance of a house when one is a FTHB and the other is not, and how that would be treated under the law.

Mon Dec 30, 2013 6:05 pm

DanimalNew Poster

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Nevermind, I cant transfer the IRA anyway. I thought that I could use is as a contribution to her IRA, but I guess that is not possible.